On January 4, 2022, Cinedigm Corp. (the “Company”) entered into an Equity Purchase Agreement among the Company, and David Chu, Augustine Hong, Helen Hong, Michael Hong, Justin Lee, Steven Park, and Kingsoon Ong (collectively, the “Sellers”) and David Chu as representative of the Sellers (the “DMR Agreement”) to acquire all of the outstanding membership interests of Asian Media Rights, LLC d/b/a Digital Media Rights (“DMR”), a diversified specialty streaming, advertising, and content distribution company with significant expertise in building audiences for global content in North America (the “Transaction”). The Transaction is subject to certain closing conditions, and is expected to close by the end of January 2022.
The purchase price for the Transaction is $22,000,000, subject to working capital and other adjustments, consisting of (i) $8,000,000 in cash and (ii) $14,000,000 of shares of Class A Common Stock, par value $0.001 per share, of the Company (the “Common Stock”) valued at the volume weighted average price per share of the Common Stock on the Nasdaq Global Market for the 20 trading day period ending on last trading day immediately preceding the closing of the Transaction.
